You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Keeping It Simple
- Thread starter dbphoenix
- Start date
Passedout,
I would be happy to. If you could please resize the chart making it more square than rectangular, that would help quite a bit.
For today, all times central time. ES .75 minute per bar chart. My interpretation. I started my chart at 8:06 AM. It does not backfill for me.
First trade, Long at 896.25 8:30 AM
Initial exit stop at 894.50
Stopped out at 8:32:15 for a loss
Next trade, Long at 897.25 at 8:41:15
Initial stop at 894.50
This trade is working. Exit stops are trailed at:
897.00
898.50
902.25
903.75 (current)
That's as far as we are into the trade at this point. Still no signs of a stop and reverse point seen.
Banker
I would be happy to. If you could please resize the chart making it more square than rectangular, that would help quite a bit.
For today, all times central time. ES .75 minute per bar chart. My interpretation. I started my chart at 8:06 AM. It does not backfill for me.
First trade, Long at 896.25 8:30 AM
Initial exit stop at 894.50
Stopped out at 8:32:15 for a loss
Next trade, Long at 897.25 at 8:41:15
Initial stop at 894.50
This trade is working. Exit stops are trailed at:
897.00
898.50
902.25
903.75 (current)
That's as far as we are into the trade at this point. Still no signs of a stop and reverse point seen.
Banker
That trade ended at 9:25:30 at 905.75 as a stop and reverse.
Initial exit stop entered at 907.50 (buy stop on the new short)
Stopped out for a loss at 9:33:45
On and on it can go. You don't have to always play the stop and reverse. If your intuition or whatever "tells" you that the reversal may not be as strong as you would like it to be, you can skip the reversal trade and exit at the reversal point to make you flat. Likewise if you want to go out for lunch or whatever, you can exit the market and just skip to #2 when you return (enter on first higher swing low, or lower swing high). Also if your charts do backfill, you can skip directly to step 2 without waiting for the first swing cycle to form (because it already has of course).
In addition you should trade an instrument which has tested positive with this strategy to you, more often than not. I first looked at NQ for this strategy, but ES seems to fit better. I never try to force my strategy on a trading vehicle, I always try to find a trading vehicle which fits my strategy. In addition, you don't need to use the .75 minute chart to trade this way, you can use whatever time period chart you are comfortable with.
Regards,
Banker
Initial exit stop entered at 907.50 (buy stop on the new short)
Stopped out for a loss at 9:33:45
On and on it can go. You don't have to always play the stop and reverse. If your intuition or whatever "tells" you that the reversal may not be as strong as you would like it to be, you can skip the reversal trade and exit at the reversal point to make you flat. Likewise if you want to go out for lunch or whatever, you can exit the market and just skip to #2 when you return (enter on first higher swing low, or lower swing high). Also if your charts do backfill, you can skip directly to step 2 without waiting for the first swing cycle to form (because it already has of course).
In addition you should trade an instrument which has tested positive with this strategy to you, more often than not. I first looked at NQ for this strategy, but ES seems to fit better. I never try to force my strategy on a trading vehicle, I always try to find a trading vehicle which fits my strategy. In addition, you don't need to use the .75 minute chart to trade this way, you can use whatever time period chart you are comfortable with.
Regards,
Banker
As it stands now the ES is stuck in what I call a trading range between roughly 904 and 910. The question I have to ask myself is: Would I really take the signals from this SAR w/ a twist strategy at this point? Personally I wouldn't. The risk/reward picture in my mind is not "worth it" to me. This strategy's best attributes are capturing trending conditions. It can get chopped up like other trend capturing strategies.
On the other hand, what good is a strategy if you can't take every signal and expect to be profitable in the long run? I don't know the answer to that question really. It may be that the trending times make you so much money that the chop times don't seem so bad in hindsight. What about discretion? Adding a rule that if the trading instrument is clearly stuck in a "fixed" range, the signals are to be taken at your discretion. This really isn't defined enough to help out someone who is trying to follow a strategy blindly. It takes trading experience to have proper "discretion" to begin with.
I have been trading this way for quite some time (buying higher swing lows (or exiting short at that juncture) and selling short lower swing highs (or exiting long at that juncture)), but I always exercised discretion. I never had the stop and reverse rule, it's something I recently added when I decided to write this down as clearly as I could. Maybe that rule should be changed, or this strategy should be ignored by those looking for a "simple" strategy to use.
Sorry to ramble on, but this trading range has raised some doubts on the stop and reverse rule.
Banker
On the other hand, what good is a strategy if you can't take every signal and expect to be profitable in the long run? I don't know the answer to that question really. It may be that the trending times make you so much money that the chop times don't seem so bad in hindsight. What about discretion? Adding a rule that if the trading instrument is clearly stuck in a "fixed" range, the signals are to be taken at your discretion. This really isn't defined enough to help out someone who is trying to follow a strategy blindly. It takes trading experience to have proper "discretion" to begin with.
I have been trading this way for quite some time (buying higher swing lows (or exiting short at that juncture) and selling short lower swing highs (or exiting long at that juncture)), but I always exercised discretion. I never had the stop and reverse rule, it's something I recently added when I decided to write this down as clearly as I could. Maybe that rule should be changed, or this strategy should be ignored by those looking for a "simple" strategy to use.
Sorry to ramble on, but this trading range has raised some doubts on the stop and reverse rule.
Banker